Belgian developer Liebrecht & wooD will open the Fashion House Outlet Centre, the company’s outlet-type development in West Park Militari, following an investment of EUR 65 million. The official opening of the center’s first phase is set for the end of the month. The opening will deliver 140 shops and 65 brands and the project’s second development phase will be completed in October 2009, according to Johan Rogier, general manager of Liebrecht & WooD. Some of the brands which will be available within the center are Adidas, Puma, Benetton, Replay, Mango, Stefanel, Levi’s, Kiltec and Diverta. The developer expects 2 million visitors in the first operational year, and an extra 20 to 30 percent for the next year. The average visitor is predicted to spend around EUR 100 in the facility. According to Rogier, the first development has found tenants for 80 percent of the commercial spaces. He said that the financial crisis would not threaten such developments since consumers will turn from expensive products to less costly items, and an outlet center offers discounts ranging from 30 to 70 percent. "The impact of the competition resulting from a new outlet center is hard to predict, because we are talking about two different strategies. Our advantage is that we are opening now," said Rogier. This is the first opening of an outlet center in Romania. Another similar development is the Mega Designer Outlets center being developed on the Bucharest-Pitesti highway by the American developer Mega Company, which is set for completion by the end of 2008. West Park Militari is owned by the Belgian developer and rents a total of 90,000 sqm. Tenants include DIY unit Hornbach with 23,000 sqm of rented space, furniture retailer Kika which has rented 29,000 sqm and IT&C retailer Technomarket, with 6,000 sqm. The park has been developed following an investment of EUR 120 million. Fashion House Outlet Centre is managed by GVA Grimley Outlet Services, the operator of six outlet centers in CEE region. Liebrecht & wooD has developed outlet centers in three Polish cities, Warsaw, Gdansk and Sosnowiec.

Magda Purice

http://www.business-review.ro, 11/17/2008